Business profit and profitability ratios

Using SWOT analysis, assess two threats to Universal Music Group (UMG).

Assess the reasons why Rough Trade Records may choose to stay small.

Using the data in Extract B, and profitability ratios, assess the ways in which Rough Trade Records could improve its profitability.

Universal Music Group has the business objective of profit maximisation. To achieve this, it is considering following either an ethnocentric or polycentric approach to its global marketing strategy.

Evaluate these two options and recommend which one is most likely to achieve profit maximisation for UMG.

Using the information in Extract E, calculate the difference in the operating profit margin between 2022 and 2021. State your answer to two decimal places. You are advised to show your working.

Explain one benefit to Tesla of its factories achieving high levels of capacity utilisation.

Assess the importance of Tesla having a task culture for its continued success.

Assess the value of lean production as a source of competitive advantage for Tesla.

Elon Musk has set the objective of increasing Tesla’s market share of the electric vehicle market. To achieve this objective, Elon Musk is considering whether to focus on market penetration of the electric car market or product development through electric trucks.

Evaluate these two options and recommend which one Elon Musk should choose to achieve the objective of increasing Tesla’s market share.

Explain one likely problem experienced by Peloton due to its rapid growth.

Using the data in Extract F, calculate the difference in Peloton’s gross profit margin between 2020 and 2021. State your answer to two decimal places. You are advised to show your working.

Assess one likely effect of consumer protection legislation on Peloton.

Assess whether cutting costs is the best way to improve Peloton’s profit.

When reviewing Peloton’s corporate strategy, its Chief Executive has identified technology as the most important PESTLE factor to prioritise. Other directors consider prioritising social factors as more important.

Evaluate these two PESTLE factors and recommend which one Peloton should prioritise when developing its future corporate strategy.

Using the data from Extract A, calculate the difference in the gearing ratio for easyJet plc between 2019 and 2020. You should state the difference to two decimal places. You are advised to show your working.

Explain one effect on easyJet plc of the reduced capacity utilisation of its aircraft in 2020.

Assess, with reference to Porter’s five forces, whether the ‘bargaining power of buyers’ represents the most significant external influence on easyJet plc.

Assess whether the change in price of jet fuel between November 2015 and July 2018 may have affected easyJet plc’s management of its working capital.

EasyJet plc wishes to improve its profitability. To achieve this, easyJet plc is considering either purchasing a new fleet of electric and hydrogen powered aircraft or focusing on increasing its market share of the package holiday market.

Evaluate these two options and recommend which one is more suitable for easyJet plc to improve its profitability.

Using the information in Extract F, calculate the three period moving averages for the percentage of rooms occupied for the periods March to May and June to August to two decimal places, stating the difference between these moving averages. You are advised to show your working.

Using the information in Extract G, calculate how many rooms need to be occupied each month for the business to break‑even.

Assess the value of historical budgeting to Les and Liz in their financial planning for Bluebells.

Assess the usefulness of SWOT analysis for Bluebells’ continued success.

Liz and Les have set themselves the objective of managing Bluebells’ finances more effectively. They are considering whether to focus more on improving cash flow or increasing profit.

Evaluate these two options and recommend which one is more suitable for Liz and Les to achieve this objective.

Explain one benefit Sports Direct could gain from conducting a SWOT analysis.

Using the information in Extract E, calculate the operating profit margin for Sports Direct in 2018. State your answer to two decimal places. You are advised to show your working.

Assess the usefulness of a sales forecast for Sports Direct.

Assess the likely consequences for Sports Direct of its corporate culture.

Sports Direct aims to reduce the labour turnover of its workforce. To achieve this, it could introduce an employee share ownership scheme or implement an empowerment strategy.

Evaluate these two options and recommend which one is most suitable for Sports Direct to achieve its aim of reducing labour turnover.

Explain one internal cause of the business failure of MG Rover Group.

Using the data in Extract F, calculate the monthly labour cost per car. You are advised to show your working.

Assess the likely effects of employee legislation on a business such as VW.

Corporate timescales can be short-term or long-term.

Assess Toyota’s decision to issue ‘Model AA’ shares as a means of raising finance.

VW’s new Chief Executive has been given the aim of increasing the company’s profitability. The two options VW is considering are to develop a new range of self-driving cars or to improve productivity.

Evaluate these two options and recommend which is most suitable to achieve the aim of increasing profitability, for a business such as VW.